Non Grain Oriented Electrical Steel Market Outlook and Forecast
The Non Grain Oriented Electrical Steel Market plays a vital role in the global electrical and energy ecosystem, supporting the efficient functioning of motors, generators, transformers, and other electromagnetic devices. Non grain oriented (NGO) electrical steel is valued for its uniform magnetic properties in all directions, making it indispensable for rotating machinery used across industrial, automotive, and power generation sectors. Rising electrification, rapid industrial automation, and increasing investments in renewable energy infrastructure are collectively reinforcing the market’s long-term relevance.
In 2025, the market is valued at USD 21.74 billion and is projected to reach USD 35.08 billion by 2035, reflecting steady expansion driven by growing electricity consumption and the modernization of power grids. Growth forecasts for the 2026–2035 period indicate a CAGR of 4.9%, underpinned by demand from electric vehicles, energy-efficient appliances, and next-generation transformers. While pricing volatility of raw materials remains a challenge, sustained investments in low-loss steel grades and advanced manufacturing technologies continue to enhance the market’s outlook.
- 2025 Market Size: USD 21.74 Billion
- Projected 2035 Market Size: USD 35.08 Billion
- Growth Forecasts (2026–2035): 4.9%
Regional Performance Highlights
- Asia Pacific: Asia Pacific dominated the non grain oriented electrical steel market by achieving over 68% market share in 2025. Strong manufacturing bases in China, Japan, South Korea, and India, combined with expanding EV production and large-scale grid upgrades, are driving sustained regional demand.
- North America: North America continues to benefit from investments in smart grids, renewable energy integration, and industrial automation, supporting consistent consumption of high-grade NGO electrical steel.
- Europe: Europe’s focus on decarbonization, energy efficiency regulations, and electric mobility is accelerating the adoption of advanced electrical steel grades across automotive and power equipment applications.
Market Segment Analysis
- Segment 1 – Asia Pacific Region: The Asia Pacific region achieved over 68% market share in 2025, reflecting its dominance in electrical equipment manufacturing, EV production, and infrastructure development.
- Segment 2 – Transformers: The transformers segment maintained its lead, sustained by achieving a 45% share in 2025, supported by grid expansion projects, renewable energy integration, and replacement of aging power infrastructure.
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Top Market Trends Shaping the Non Grain Oriented Electrical Steel Industry
- Accelerating Demand from Electric Vehicles
Electric vehicles are emerging as a major growth driver for the non grain oriented electrical steel market. NGO electrical steel is a critical material in EV traction motors, where low core losses and high magnetic efficiency directly impact driving range and performance. Automakers are increasingly collaborating with steel manufacturers to develop customized grades optimized for high-speed motors. - Expansion of Renewable Energy and Grid Modernization
The global shift toward renewable energy is fueling demand for transformers and generators that rely on non grain oriented electrical steel. Wind turbines, hydroelectric generators, and solar power infrastructure require reliable magnetic materials to ensure energy conversion efficiency. Simultaneously, grid modernization projects are driving replacement demand for advanced transformer cores. - Focus on Energy Efficiency and Low-Loss Materials
Stringent energy efficiency standards are pushing manufacturers to adopt low-loss NGO electrical steel grades. Innovations such as thinner gauges, improved insulation coatings, and enhanced alloy compositions are helping reduce energy losses across electrical systems. - Technological Advancements in Steel Processing
Continuous annealing, laser scribing, and advanced coating technologies are improving the magnetic performance and durability of non grain oriented electrical steel. These advancements are enabling suppliers to meet the evolving performance requirements of next-generation electrical equipment.
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Recent Company Developments
The competitive landscape of the non grain oriented electrical steel market is shaped by both established steel producers and emerging technology-driven players. Over the past 12 months, companies have focused on capacity expansions, product innovation, and strategic partnerships to strengthen their market positions.
- Nippon Steel Corporation: Continued investments in high-efficiency NGO electrical steel grades for EV motors and renewable energy applications.
- POSCO: Expanded production capacity for ultra-low-loss electrical steel to address rising demand from automotive OEMs.
- ArcelorMittal: Launched new non grain oriented steel products aimed at improving motor efficiency in industrial automation systems.
- Baosteel Group: Strengthened its domestic and export presence through upgrades in manufacturing technology and quality control.
- Tata Steel: Focused on developing sustainable electrical steel solutions aligned with global decarbonization goals.
- JFE Steel Corporation: Advanced R&D initiatives targeting high-speed motor applications and next-generation transformer cores.
- thyssenkrupp Steel: Enhanced its electrical steel portfolio to meet European energy efficiency regulations.
- Voestalpine: Invested in specialized NGO electrical steel products for niche industrial and power generation uses.
These developments highlight a strong emphasis on innovation, sustainability, and alignment with evolving end-user requirements.
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